Despite 80 furniture stores closing so far this year, a little optimism remains
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MORE than 80 Irish furniture and interior design firms have gone to the wall so far this year, as plummeting home completions, a desperate economy and savage competition extract a heavy toll.
"The situation is dire, there's no other way of describing it," says Irish Business and Employers' Confederation's Torlach Denihan, who represents major players like Woodies' DIY, Argos and Dunnes.
The scale of the crisis was crystallised by Australian giant Harvey Norman this week, which said its 14 Irish stores are now all unprofitable, following sales falls of 20 to 40pc in 2008.
"I've been in business since 1961 and I've never seen this sort of sales decline," said executive chairman Gerry Harvey, who admitted he regrets ever getting into the market here.
Figures from the CSO make for grim reading, with 2008's furniture and lighting revenue coming in 6pc below 2005's, this despite a 3pc rise in volumes.
The falls in 2009 have been even more pronounced, with revenue collapses peaking in April, when sales were almost 43pc lower than April 2008. But despite the brutal environment, some optimism remains.
Kieran Wallace, the examiner recently appointed to furniture chain Arramount, says he is "very confident" that the business can be saved and can be profitable.
After putting staff on 34-hour weeks a few months ago, Des Kelly has now returned them to the usual 39, and is hiring again, though he admits sales are down 20pc year-on-year and times are tough.
"My motto is don't make money, make friends," he says. "We're paying our taxes and we're paying our wages, if I break even I'll be happy."
- laura noonan
